Election: Richmond Heights asks again for income tax increase

In May, Richmond Heights voters will be asked for the third time since 2011 to pass an income tax increase. A "yes" vote would mean a 0.25 percent increase to 2.25 percent. The rise would be effective July 1 if passed.

Richmond Heights Finance Director Paul Ellis said it is a critical step in keeping the current balances from dropping to state minimums.

"In order to not fall into fiscal caution, emergency conditions, you have to have equal of one-twelfth of general fund expenditures," he said.

If passed, Ellis said he anticipates the city will take in about $820,000 in additional revenue.

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He said the city believes it will not make that money otherwise because of decreases in real estate property taxes and inheritance taxes, removal of the Commercial Activity Tax and a change in state funding.

A 0.75 percent tax credit decrease was voted down in 2011. In November a 0.25 percent increase to income tax was also voted down.

Now the same 0.25 percent increase will appear on the ballot again.

Ellis said if the increase is approved, "We'll be able to maintain our current level of services and pay our ongoing obligations on a timely basis and be able to maintain our fund balance at the end of 2013."